Benefits of consolidating 401ks
I like this answer the best as it is the most complete. To the contrary some IRA trustees will manage your account for free and even give rebates in the form of free trades or actual cash. The "physical" procedures vary - a couple of times I never saw the check, once I got a check made out to the destination fund company (with my account number on it), and once I got a check to me and I sent my own check to the destination fund company (I think at that one I had been in the 401(k) less than a year and that made a difference)[email protected] B, this is indeed an excellent summary, but does not answer the OP's question directly as I read it. You can roll all of your former company 401(k)'s into a single IRA, managed by whatever company you like.OP asks "how" and specifies that they do not prefer the plan offered by their current company. Many employers will not let you transfer money out of your 401(k) while you're still a current employee, though, so you may be stuck with the 401(k) used by your current company until you leave.Explain you don't work there anymore and ask if you can roll money into it. So either, 1) You can roll all your prior 401ks into your current 401k.2) You might be able to roll all prior 401ks into the prior 401k of your choice if they will accept contributions after you've left.I did direct rollovers, so I never touched the money.
As a Savings Plus participant, you are eligible to rollover your 401(a), 401(k), 403(b), 457(b) or pre-tax IRA into your Savings Plus account.Hence I can do whatever I want with my investments. Warning: rollover from one 401k to another may reset the clock on the "Rule of 55". If you think you may want to take early retirement, you need to understand how this works.ETF's are nice because they track other indexes and tend to have lower fees. (Details belong in another question.) If you follow the procedures outlined by the IRA trustee there should not be any problems.The best way to do it is to coordinate the transfer directly between your old 401(k) and your new IRA, so the check is never sent directly to you. While it is certainly more convenient to do a trustee-to-trustee transfer, there is no penalty for being the intermediary as long as you follow the rules.Forward it on, don't spend it, don't hang on to it too long, etc.